I hear a lot of talk about compounding interest on rental properties. I’m curious of how everyone out there does this and what methods they find to be best?
The two are not really related.....compounding is when interest is not paid or collected so the interest gets added to the balance so you start earning “interest on the interest” as well as the principal balance. Some people confuse a mortgage loan with “compound” or “amortized “ (no such thing) interest.
@Steven Moore not sure what they are talking about. Compounding interest is interest earned reinvested and it is earning interest